COPENHAGEN, May 2 Reuters Shipping group Maersk on Thursday reported firstquarter earnings above expectations and lifted the lower end of its fullyear profit guidance range, supported by higher demand and the diverting of vessels away from the Red Sea.

Demand is trending towards the higher end of our market growth guidance and conditions in the Red Sea remain entrenched, CEO Vincent Clerc said in a statement.

This not only supported a recovery in the first quarter compared to the previous quarter, but also provided an improved outlook for the coming quarters, as we now expect these conditions to stay with us for most of the year, he said.

Maersk said it now expects underlying earnings before interest, taxation, depreciation and amortisation EBITDA this year between 4 billion and 6 billion, compared with its previous guidance between 1 billion and 6 billion.

Earnings before interest, taxation, depreciation and amortisation EBITDA fell to 1.59 billion in the quarter from 3.97 billion a year earlier, beating analysts39; expectations of 1.46 billion in an LSEG poll.

Reporting by Jacob GronholtPedersen, editing by Terje Solsvik

Source Reuters